Following Stratiphy's approval to offer cryptocurrency ETNs in a tax-free individual savings account (ISA), UK investors can once again hold these investments without incurring tax liabilities. Stratiphy, a fintech platform, provides users with personalized investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs).
ISAs allow users to save up to £20,000 annually without paying income tax or capital gains tax on returns. Recently, the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs, rendering last year's decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The platform, which manages £4 million for 2,000 clients, has seen significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other assets.